SEGMENT REPORTING

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Our business segments are based upon our organizational structure, which focuses primarily on the services offered, and are consistent with the internal reporting used by our Chief Executive Officer (our Chief Operating Decision Maker) to evaluate operating performance and to assess the allocation of our resources.

We classify our businesses into three reportable segments. The Mortgage Services segment provides loan servicers, originators, rental property investors and real estate consumers with products, services and technologies that span the mortgage and real estate lifecycle. The Financial Services segment provides collection services primarily to debt originators and servicers (e.g., credit card, auto lending, retail credit and mortgage) and customer relationship management services primarily to the utility, insurance and hotel industries. The Technology Services segment provides software and data analytics solutions that support the management of mortgage and real estate activities and marketplace transactions across the mortgage and real estate lifecycles and IT infrastructure management services. In addition, Corporate Items and Eliminations include eliminations of transactions between the reportable segments, interest expense and costs related to corporate support functions including executive, finance, law, compliance, human resources, vendor management, risk management and sales and marketing costs not allocated to the business units. Intercompany transactions primarily consist of IT infrastructure management services.

Financial information for our segments is as follows:

	For the year ended December 31, 2016
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	804,539	$	74,352	$	160,101		$	(41,689	)	$	997,303
Cost of revenue	514,832		53,841		159,869			(38,497		)	690,045
Gross profit (loss)	289,707		20,511		232			(3,192		)	307,258
Selling, general and administrative expenses	108,987		17,768		27,811			59,589			214,155
Litigation settlement loss, net of $4,000    insurance recovery	—		—		—			28,000			28,000
Income (loss) from operations	180,720		2,743		(27,579		)	(90,781		)	65,103
Other income (expense), net	43		92		66			(20,983		)	(20,782		)
Income (loss) before income taxes and    non-controlling interests	$	180,763	$	2,835	$	(27,513	)	$	(111,764	)	$	44,321

	For the year ended December 31, 2015
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	786,648	$	88,448	$	215,482		$	(39,112	)	$	1,051,466
Cost of revenue	474,169		60,806		187,835			(35,483		)	687,327
Gross profit (loss)	312,479		27,642		27,647			(3,629		)	364,139
Selling, general and administrative expenses	105,153		18,707		29,902			67,106			220,868
Impairment losses	—		—		71,785			—			71,785
Change in the fair value of Equator Earn Out	—		—		(7,591		)	—			(7,591		)
Income (loss) from operations	207,326		8,935		(66,449		)	(70,735		)	79,077
Other income (expense), net	506		58		61			(26,642		)	(26,017		)
Income (loss) before income taxes and    non-controlling interests	$	207,832	$	8,993	$	(66,388	)	$	(97,377	)	$	53,060

	For the year ended December 31, 2014
(in thousands)	Mortgage Services		Financial Services		Technology Services			Corporate Items and Eliminations			Consolidated Altisource
Revenue	$	793,143	$	98,499	$	227,300		$	(40,026	)	$	1,078,916
Cost of revenue	486,387		64,338		192,426			(35,971		)	707,180
Gross profit (loss)	306,756		34,161		34,874			(4,055		)	371,736
Selling, general and administrative expenses	94,686		18,791		32,393			55,863			201,733
Impairment losses	—		—		37,473			—			37,473
Change in the fair value of Equator Earn Out	—		—		(37,924		)	—			(37,924		)
Income (loss) from operations	212,070		15,370		2,932			(59,918		)	170,454
Other income (expense), net	204		62		(31		)	(23,424		)	(23,189		)
Income (loss) before income taxes and    non-controlling interests	$	212,274	$	15,432	$	2,901		$	(83,342	)	$	147,265

(in thousands)	Mortgage Services		Financial Services		Technology Services		Corporate Items and Eliminations		Consolidated Altisource
Total assets:
December 31, 2016	$	306,207	$	38,746	$	130,032	$	214,227	$	689,212
December 31, 2015	325,461		53,757		165,778		176,802		721,798

Our services are provided to customers primarily located in the United States. Premises and equipment, net consist of the following, by country:

(in thousands)	December 31, 2016		December 31, 2015
United States	$	71,418	$	85,021
India	14,006		21,187
Luxembourg	14,791		9,944
Philippines	3,027		2,664
Uruguay	231		305
Total	$	103,473	$	119,121